[Kabar-indonesia] 21 RI Biz/Econ Reports: Motorbike Sales Down; CPO; 9% Key Rate [+JSX]

[Joyo at aol.com]

21 Reports:

- Indonesian Jan-Sept motorbike
  sales down 20.5 pct
- Indonesian shares close down 
  dragged by falls in Asia markets
  [incl: Rupiah dips to 9,230]
- Indonesia raises palm oil base
  export prices
- Indonesian palm oil higher on
  crude, Malaysia
- Yudhoyono hopes lower rate will 
  help Indonesian business revival
- Indonesia to reactivate four trade 
  promotion centers to boost exports
- Indonesia, China sign four MOU
- Dublin Port Co Inks Sabang Port
  Devt Deal
- Bank Indonesia rate can be lowered 
  to 9 pct: Deputy gov
- Indonesia's Bank Permata cuts 
  deposit interest rate
- Indonesia Islamic banking share
  seen up -c.bank
- Saudi-based bank to invest in Indonesian
  infrastructure projects
- Share sales in Indonesian IPOs likely to
  hit US$760.6 mln in 07
- Schroder Indonesia named country's
  biggest investment manager
- Indonesia's Bimantara unit sees 
  100-125 mln usd proceeds from 
  IPO - report
- Indonesia's Buana Finance secures
  US$28 mln syndicated loans
- Indonesia's Enseval prepays
  13.7 mln usd debt
- Indonesia's Intraco Penta expects 
  US$63.4 mln income by year end
- Indonesia to tightly monitor molasses
  exports
- update: China Agrees To Lift 15% 
  Cocoa Tariff
- JP: Mobitel to float 3.9 billion 
  shares on JSX 

Indonesian Jan-Sept motorbike sales down 20.5 pct

JAKARTA, October 9 (Reuters) - Indonesian motorcycle sales in volume
terms fell by around a fifth in the first nine months of the year from
the same period of 2005, an official at the country's top automotive
distributor said on Monday.

Johanes Hermawan, the marketing director of PT Astra Honda Motor, said
motorbike sales in the January to September period fell to around 3.1
million units from nearly 3.9 million in the same period of 2005.

Sales of Honda motorcycles were 1.6 million units in the
January-September period, down from 2 million last year.

"The fall is due to weaker consumer purchasing power. Although there
has been some improvements in macroeconomic condition such as lower
interest rates, but it hasn't help push sales as high as last year,"
Hermawan told reporters.

He said sales of Honda motorcycles were likely to fall by around 15
percent this year to 2 million units."

Indonesia's auto sector is still suffering from a government decision
last year to sharply hike domestic fuel prices to scale back costly
fuel subsidies following high global oil prices.

PT Astra Honda Motor, jointly owned by Honda Motor Corp. and PT Astra
International Tbk , Indonesia's largest automotive distributor, is the
distributor of Honda motorcycles in Indonesia.

PT Astra International is controlled by Singapore's Jardine Cycle and
Carriage Ltd. .

Motorbike sales hit 5.07 million units in 2005 amid record low
interest rates and optimism at the time about Southeast Asia's biggest
economy.

---------------------------------

Indonesian shares close down dragged by falls in Asia markets

JAKARTA, October 9 (AP) - Indonesian shares closed down 0.4 percent
Monday at 1543.424, up from intraday low of 1534.050, weighed down by
falls in most Asia markets and weak rupiah.

"These factors provided reasons for investors to realize gains after
recent rally," says trader.

The Jakarta Stock Exchange Composite index ended down with a moderate
volume of 1.4 billion shares. Traders expect shares to trade lower
Tuesday led by further correction in banks.

Meanwhile, the local currency, the rupiah, ended lower as the U.S.
dollar was closed at 9,230 against its previous 9,206 close and is
expected to trade further lower Tuesday on heightened geopolitical
risk in Asia after North Korea's nuclear missile test and genuine
demand from oil importers, dealers say.

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Indonesia raises palm oil base export prices

JAKARTA, October 9 (Reuters) - Indonesia has raised the base export
prices of palm oil products to bring them in line with international
prices, the trade ministry said on Monday.

The new prices will be effective from Oct. 10 to Nov.9.

The base export price of crude palm oil will be raised to $434 a tonne
from $393 in September, while refined, bleached and deodorized (RBD)
palm oil's export price is up to $456 a tonne from $416.

The base export price of RBD palm olein, used as cooking oil, will
also be raised to $466 a tonne from $426, while crude palm olein was
increased to $456 a tonne from $416.

The trade ministry also raised the palm kernel's base export price to
$82 a tonne from $73.

Base prices are used to calculate the amount of tax paid by exporters.

Crude palm oil is subject to a 1.5 percent export tax, while other
palm oil derivative products are subject to a 0.3 percent export tax.
Palm kernel is subject to a 3 percent export tax.

Indonesia is the world's second-biggest exporter and producer of palm
oil after Malaysia.

Indonesia has forecast palm oil output will likely rise to 16.35
million tonnes in 2007, from an estimated 15 million tonnes this year.

The country's palm oil exports are likely to grow to 12 million tonnes
next year from an estimated 11.3 million tonnes in the current year.

The trade ministry will keep the coal base export price unchanged at
$34.83 per tonne. The export tax for coal is 5 percent.

----------------------------------------------------------

Indonesian palm oil higher on crude, Malaysia

JAKARTA, October 9 (Reuters) - Indonesian crude palm oil prices traded
higher on Monday, supported by gains in crude oil and stronger
Malaysian crude palm oil futures, traders said.

At the state marketing centre in Jakarta, crude palm oil traded at
4,158 rupiah ($0.451) per kg with some 1,500 tonnes of the commodity
changing hands.

On the export front, crude palm oil was offered at $425 a tonne for
October shipment, free on board Belawan, with bids standing at $417.5.

Sellers offered November and December shipments at $427.5 per tonne,
while buyers bid at $420.

"Firmer crude oil prices and Malaysian gains have boosted prices," a
Jakarta-based trader said.

The benchmark third-month December <KPOZ6> contract on the Bursa
Malaysia Derivatives exchange was up three ringgit at 1,545 ringgit
($418) a tonne.

Palm oil increasingly tracks crude oil prices, driven by rapid growth
in the global biofuel industry based on vegetable oils, seen as a
cheaper option to fossil fuels.

U.S. crude <CLc1> rose 63 cents to $60.39 a barrel at 1034 GMT
compared with Friday.

There were no auctions in North Sumatra's Medan and at PT Astra Agro
Lestari Tbk in Jakarta.

"We didn't hold any local tender as stocks available were used to meet
overseas demand," an Astra Agro official said.

In Jakarta, the cooking oil market shrugged off support from Malaysia
with olein trading lower at 4,625 rupiah per kg compared with
4,650-4,675 on Friday.

Traders said a move by the trade ministry after the market closed to
raise the base export prices of palm oil products would put presure on
prices in the short term only.

"The effect will be limited as it is a routine policy, we probably
will see a small correction in prices but in the end the market will
make some adjustment to the new prices," another trader in Jakarta
said.

The trade ministry lifted the base export price of crude palm oil to
$434 a tonne from $393 in September, while refined, bleached and
deodorised (RBD) palm oil's export price rose to $456 a tonne from
$416.

The base export price of RBD palm olein, used as cooking oil, was
raised to $466 a tonne from $426, while crude palm olein was increased
to $456 from $416.

The trade ministry raised the palm kernel base export price to $82 a
tonne from $73.

The new base prices will be effective from Oct. 10 to Nov. 9.

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Yudhoyono hopes lower rate will help Indonesian business revival

JAKARTA, October 9 (Asia Pulse/Antara) - President Susilo Bambang
Yudhoyono said here on Friday he hoped the decline in the Bank
Indonesia (BI) interest rate since May would help the revival of
businesses or the real sector.

"Although it is now still standing at 10.75 per cent it hopefully will
drop to below one digit by the end of this year. This will be very
good for the revival of businesses or the real sector," he said at a
press conference at the presidential office after meeting with
Coordinating Minister for Economic Affairs Budiono, Finance Minister
Sri Mulyani and Bank Indonesia Governor Burhanuddin Abdullah.

He said the central bank's policy to lower rates provided a new
opportunity to push economic growth.

With the decline in the BI rate, he said, it was hoped national banks
could also lower their interest rates.

According to the President, present macro-economic conditions were
good as they were marked by a stable rupiah, declining rate of
inflation and increasing foreign exchange reserves as well as
improving economic growth.

Although macro-economic indicators were promising, he said that a lot
of things still had to be done by the government to help reduce
poverty and unemployment.

"Our hope is that improvement in macro-economic conditions can be
transformed into reducing poverty and unemployment," he said.

He said the most important thing to do at present was continuously
improving investment conditions to revive the real sector and in turn
reduce poverty and unemployment.

"Private investment must develop more and the investment climate
improvement package must be made a success," he said.

The president said present economic growth was quite good, spurred by
exports and government spending so that what was needed further was
contribution from the investment sector.

For that, he appealed to domestic businessmen to invest at home rather
than abroad to help the national economy.

He also called on central and regional government officials to reduce
costs to create a better investment atmosphere.

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Indonesia to reactivate four trade promotion centers to boost exports

JAKARTA, October 9 (Asia Pulse/Antara) - The Indonesian Trade Ministry
will reactivate four Indonesian Trade Promotion Centers (ITPCs) in New
York (US), Hamburg (Germany), Sydney (Australia) and Milan (Italy) in
2006 to boost Indonesia's exports to the four countries.
"Actually, the Trade Ministry plans set up an ITPC in Shanghai, but
the opening of the center is still waiting for the approval of the
state minister of administrative reform," Trade Ministry Secretary
General Hatanto Reksodipuro said here last weekend.

Indonesia had 20 ITPCs before the 1998 economic crisis, but the crisis
prompted the government to close 14 of the centers, as then President
BJ Habibie had raised objections to the operation of those ITPCs for a
limited budget.

The six ITPCs currently still operational are found in Osaka (Japan),
Budapest (Hungary), Dubai (United Arab Emirates), Los Angeles (US),
Johanesburg (South Africa) and Sao Paolo (Brazil)

Besides reopening the four ITPCs in 2006, the government will
reactivate nine more ITPCs in Rotterdam (Netherlands), Jeddah (Saudi
Arabia), Mexico City (Mexico), Athena (Greece), Marseilles (France),
Helsinki (Finland), Montreal (Canada), Santiago (Chile) and Casablanca
(Morocco).

ITPCs serve as the instrument of the National Agency for Export
Development, with the main tasks of carrying out export promotion,
expanding the trade network abroad and conducting market intelligence.

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Govt, U.S. Sign Anti-Transshipment Deal

JAKARTA, October 9 (Dow Jones)--The U.S. and Indonesian governments
have signed an agreement to combat the illegal transshipment of
textiles and garments, the Jakarta Post reported Saturday.

Indonesian Minister of Trade Mari Elka Pangestu and U.S. Trade
Representative Susan Schwab signed the agreement in Washington last
month, the report said.

Indonesian garment and textile exporters have complained that
Indonesia has become a regional illegal transshipment hub for Chinese
exporters aiming to circumvent U.S. import safeguard measures.

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Indonesia, China sign four MOU

DENPASAR, October 9 (Asia Pulse/Antara) - Indonesia-China economic
relations will enter a new chapter with the signing of four memoranda
of understanding (MoUs) and a note exchange document by Indonesian
Trade Minister Mari Elka Pangestu and her Chinese counterpart Bo
Xilai.

Mari told the press in Nusa Dua, Bali, Friday evening that the signing
of the four MoUs and note exchange document is intended to step up
mutually beneficial bilateral economic relations between the two
countries.

She was speaking at a press conference in the presence of her guest
after attending the 8th Joint Commission Meeting (JCM) on economic,
trade and technical cooperation between Indonesia and China.

The memoranda of understanding include an MoU on economic and trade
website cooperation and an MoU on the establishment of a Joint
Investment Promotion Committee.

The two other memoranda of understanding comprise an MoU on the
reduction of cacao price under the tariff reduction program in
compliance with the ASEAN-China free trade agreement (ACFTA) and an
MoU on technical cooperation in the eradication of bird flu.
The note exchange document pertains to assistance in the form of
training for increasing capacity as part of the implementation
cooperation in economic and trade management.

The Joint Commission Meeting (JCM) is one of the two countries'
efforts to meet the trade value target of US$30 billion in 2010, which
was set in an agreement between Indonesian President Susilo Bambang
Yudhoyono and China's Preident Hu Jintao in April 2005.

The total trade value between Indonesia and China in the first six
months of 2006 reached US$6.7 billion, composed of Indonesia's exports
worth US$3.7 billion and imports estimated at US$2.9 billion, which
constituted a US$0.8 billion surplus for Indonesia.

The 8th JCM also discussed latest trade and investment issues as well
as the implementation of technical cooperation, especially in the
construction of infrastructure with China's concessionary assistance.

Minister Bo Xilai meanwhile said that China has placed Indonesia as
one of its important and strategic trade partners in Asia, as
reflected in the increasing contacts between the businessmen of the
two countries.

He pointed out that the trade value between the two countries
continued to increase and Chinese investors have invested hundreds of
millions of dollars in Indonesia. China's investment approved by the
Indonesian government from 2001 to August 2006 reached US$600 million
in 310 projects.

--------------------------------------------------------------

Dublin Port Co Inks Sabang Port Devt Deal

JAKARTA, October 9 (Dow Jones)--Ireland's privately-held Dublin Port
Co. has signed a memorandum of understanding with northwestern Aceh
province to develop Sabang port into an international container hub,
the Jakarta Post reported.

The two sides have agreed to form a joint venture to upgrade the port
facilities that will involve investment of more than $100 million in
infrastructure including container cranes, the report said, citing
Dublin Port Co. representative Bernardus R. Djonoputro.

The report said Sabang port has the potential to compete with
Singapore as a cargo and cruise ship destination.

---------------------------------------------------------------

Bank Indonesia rate can be lowered to 9 pct: Deputy gov

JAKARTA, October 9 (Asia Pulse/Antara) - Bank Indonesia's interest
rate can be lowered further to between 9 and 9.5 per cent late this
year if inflation rate averages 7 per cent and real interest rate
ranges from 2 to 2.5 per cent, the central bank's deputy governor
Aslim Tadjuddin said.

The expected BI rate at 9 to 9.5 per cent would create a climate
conducive to the national economy and hopefully boost Indonesian
products' competitive edge, he said here Friday.

"We hope that with a further reduction in BI rate, credit interest
rate will be lowered as well," he said.

The central bank's deputy governor said he was not worried about
fluctuations in the rupiah's exchange rate since the country's current
account this year would enjoy a surplus of about US$8 billion.

Tadjuddin also predicted that the rupiah's exchange rate would rebound
against the US dollar thanks to easing external pressures notably the
US economy.

The US dollar, he said, was currently not in a strong position as the
US economy was expected to slow down and the country had a huge
deficit in its foreign trade.

---------------------------------------------------------------

Indonesia's Bank Permata cuts deposit interest rate

JAKARTA, October 9 (Asia Pulse/Antara) - Privately-run Bank Permata
(JSX:BNLI) has reduced its interest rate of rupiah-and
dollar-denominated deposits beginning on Oct 6 in response to Bank
Indonesia's decision to cut its key rate by 50 basis points to 10.75
per cent on Thursday, an official said here Friday.

The interest rate of rupiah-denominated deposits for periods of one
and three months decreased to 8 per cent from 8.5 per cent previously
and for periods of six to 12 months fell to 7.50 per cent from 8.50
per cent previously, Bank Permata vice president/corporate secretary
head Iman Teguh Saptono said.

Meanwhile, the interest rate of dollar-denominated deposits for
periods of one and three months were stable at 2.50 per cent and for
periods of six and 12 months dropped to 2.50 per cent from 3.00 per
cent.

Bank Indonesia reduced its rate for the first time this year by 25
basis points from 12.75 per cent to 12.50 per cent on May 9. The
decision was made for the first time since December 6.

The central bank cut its rate again from 12.50 per cent to 12.25 per
cent in July.

The BI rate was reduced by 50 basis points from 12.25 per cent to
11.75 per cent August and by 50 points again to 11.25 per cent
September.

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Indonesia Islamic banking share seen up -c.bank

JAKARTA, October 9 (Reuters) - The percentage of total Indonesia
banking industry assets held by Islamic banks will likely grow to
between 5 and 6 percent by 2011 from around 1.5 percent now, due
partly to a stronger legal framework, a central bank official said on
Monday.

The central bank issued new regulations last week aimed at boosting
Islamic Sharia banking following a pick up in demand for such products
in Indonesia, the world's most populous Muslim nation.

Under Islamic or Sharia law, interest is banned and income must
instead be derived from a fundamental economic transaction such as
trade in goods and services, direct investment in a business or
renting out a property.

"Officially in our blueprint we are targeting the share of 5-6 percent
(to all banks) in 2011," Harisman, the central bank's director for
Sharia banking, told reporters.

"But by the end of 2006, we will revise it. I expect it to be more
than that." He did not elaborate further.

The total assets of Islamic banks amounted to 22.9 trillion rupiah
($2.48 billion) in July, or around 1.5 percent of the domestic banking
industry's total assets. The figure was about 1.4 percent at the end
of last year.

Experts have said Indonesia has potential to become a major player in
global Islamic finance due to its large population of 220 million
people.

But it lags neighbouring countries like Malaysia and Singapore which
have adjusted their technical, legal, tax and accounting framework,
helping them expand Islamic financing much faster.

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Saudi-based bank to invest in Indonesian infrastructure projects

JAKARTA, October 9 (Asia Pulse/Antara) - The Saudi based Islamic
Development Bank (IDB) is seeking to raise funds to support
infrastructure development in Indonesia.

The bank will seek to mobilize capital in its Islamic Infrastructure
Fund for Indonesia to be invested in infrastructure projects in
Indonesia, IDB said in a press statement received in Jakarta last
weekend.

The statement did not specify the amount of the fund.

The Indonesian government will hold an Indonesia Infrastructure
Conference & Exhibition 2006 next month to offer infrastructure
projects to investors.

The statement said IDB has sponsored the setting up of forum Middle
East Investment Forum, held last month in Jeddah, Saudi Arabia,
promoting investment in Indonesia to Middle-east investors and those
from other IDB members.

---------------------------------------------------------------

Share sales in Indonesian IPOs likely to hit US$760.6 mln in 07

JAKARTA, October 9 (Asia Pulse/Antara) - Share sales in initial public
offerings in Indonesia's capital market have been forecast to reach
Rp7 trillion (US$760.63 million) next year, a 100 per cent increase
from this year's target.

Lower interest rates and inflation and better stability of the rupiah
against the U.S. dollar, will boost share trade in 2007, an analyst
predicted.

Head of debt research of CIMB-GK Securities Indonesia Kahlil Rowter
told the Investor Daily last weekend improvement of the macro economic
indicators will encourage expansion by companies.

This year IPOs launched by companies are predicted to reach up to
Rp3.5 trillion in value.

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Schroder Indonesia named country's biggest investment manager

JAKARTA, October 9 (Asia Pulse/Antara) - PT Schroder Investment
Management Indonesia ranked first among ten top investment managers in
the country in net assets at the end of September, 2006.

Schroder reported assets valued at Rp8.78 trillion (US$954 mln),
almost 22 per cent of the total assets of investment managers in the
country by the end of September.

PT Fortis Investments was second with net assets of Rp3.92 trillion,
followed by PT Manulife Aset Manajemen Indonesia with net assets of
Rp3.39 trillion.

The ten largest investment managers accounted for 73 per cent or
Rp29.25 trillion of the total assets of investment managers in the
country.

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Indonesia's Bimantara unit sees 100-125 mln usd proceeds from IPO - report

JAKARTA, October 9 (XFN-ASIA) - PT Mobile-8 Telecom, a 75.87 pct-owned
unit of PT Bimantara Citra, expects to raise 100-125 mln usd from its
planned initial public offering, Bisnis Indonesia quoted Bimantara
president Hary Tanoesoedibyo.

Mobile-8 is planning to sell 3.9 bln shares or 19.91 pct of its
enlarged capital through the IPO slated for Nov 22-24. The shares will
be listed on the Jakarta Stock Exchange on Nov 29.

"We will use the proceeds to expand our network capacity," Tanoesoedibyo said.

Mobile-8 has said it is aiming to expand the capacity of its network
to 4 mln subscribers by the end of next year and to 7 mln by the end
of 2008, from the estimated 2.2 mln at the end of this year.

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Indonesia's Buana Finance secures US$28 mln syndicated loans

JAKARTA, October 9 (Asia Pulse/Antara) - Publicly-listed leasing
company PT Buana Finance (JSX:BBLD) has secured US$28 million in
syndicated loans from a number of financial institutions.

The company used 120 per cent of its receivables as collateral for the
loans payable in 48 months including the availability period of 12
months, Buana Finance President Director R.C. Eko S. Budianto said in
a report to the Capital Market Supervisory Board (Bapepam) on Monday.

He said Buana Finance signed a facility agreement with the financial
institutions on Oct. 5.

The financial institutions are the offshore branch of the Chinatrust
Commercial Bank Ltd., the Jakarta branch of the Bank of China Ltd.,
the offshore branch of SinoPac Bank, the Tokyo branch of Bank Negara
Indonesia (BNI), Chailease Finance (B.V.I) Company Ltd., the Osaka
branch of the State Bank of India, the offshore branch of Bowa Bank
Ltd, and IFS Capital Limited.

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Indonesia's Enseval prepays 13.7 mln usd debt

JAKARTA, October 9 (XFN-ASIA) - PT Enseval Putera Megatrading, a
distributor of pharmaceutical and consumer products, said it has
prepaid 13.7 mln usd worth of its outstanding debt.

Enseval said in a statement that under a debt restructuring scheme
signed last year, it had until 2010 to repay bilateral and syndicated
loans totaling 30.7 mln usd.

The firm, however, decided earlier this year to speed up repayment in
order to minimize risks stemming from higher US dollar interest rates
as well as exchange rate fluctuations.

It said the prepayment was also made possible by its improved
financial performance.

Enseval said after its last prepayment, its cash and cash equivalents
now amount to 200 bln rupiah.

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Indonesia's Intraco Penta expects US$63.4 mln income by year end

JAKARTA, October 9 (Asia Pulse/Antara) - Heavy-duty equipment
distributor PT Intraco Penta Tbk (JSX:INTA) predicts that its earnings
by the end of the year will reach Rp583.7 billion (US$63.4 million)
and its net profit Rp14.4 billion.

The company's marketing director, Jimmy Halim, said here on Friday the
2006 income would be higher than Rp786.52 billion recorded in 2005.

However, profit would be smaller than last year when the figure
reached Rp17.997 billion, he said.

Until June this year, the company's earnings had been recorded at
Rp135.4 billion while in August the figure reached Rp374.3 billion.

"We are optimistic our earnings target for 2006 will be reached,
especially because it is supported by the government's recent decision
to reduce again the price of fuels for industries," he said.

He said the company's debt burden this year dropped drastically as a
result of restructuring on US$16.4 million of its debt in October last
year.

"We have taken a correct step by converting shares into equity so that
corporate capital will be stronger," he said.

Jimmy said the company's current liabilities dropped by 33.7 per cent
to Rp260.9 billion while its long-term debts declined by 21.6 per
cent.

The company's equity/capital meanwhile rose by 109.98 per cent.

"The decline in debts and the rise in equity followed a decrease in
corporate and bank debts," he said.

He said corporate debts which had been restructured were debts to two
foreign creditors, namely Pristine Resources International and
Westwood Finance which were now the company's majority shareholders.

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Indonesia to tightly monitor molasses exports

JAKARTA, October 9 (Asia Pulse/Antara) - The Ministry of Trade will
issue a regulation to control the export of molasses, the ban on which
had been proposed by the Ministry of Industry three months ago with a
view to ensuring its domestic supply for the production of ethanol, a
senior official said.

Hartojo Agus Tjahjono, director of Agricultural and Forestry exports
at the Ministry of Trade said here that his office was still
processing the regulation and had sent a progress report to the
minister of trade.

One proposal which has already been sent to minister involves allowing
fertilizer exports only in cases of an oversupply.

The mechanism maintains a sound balance between profits from exports
and domestic consumption, he added.

The price of molasses abroad stood at US$105 per ton, and $81 per ton
on the domestic market.

So far domestic production of molasses is not enough to meet domestic
consumption. In 2005, production reached 1,305,455 tons while domestic
consumption reached 1,256,915 tons, and exports amounted to 227,448
tons. Meanwhile, consumers in Indonesia imported 52,862 tons of the
commodity last year.

"Sugarmills outside Java island and traders have been exporting the
product mostly to Thailand," Agus Purnomo, chairman of the Association
of Indonesian Spirits and Ethanol Producers told ANTARA on a different
occasion.

Under the prevailing regulations, he said, molasses produced in Java
were not allowed to be exported.

Agus, president director of the sugarmill PT Pabrik Gula Rajawali I,
said his three sugarmills produced 100,000 tons of molasses per year
and sold to companies in East Java.

PT Pabrik Gula Rajawali I is a subsidiary of PT Rajawali Nusantara
Indonesia (RNI) Holding Group. RNI has 10 sugar mills in West Java,
Yogyakarta, East Java and North Sulawesi producing 400,000 tons per
year.

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China Agrees To Lift 15% Cocoa Tariff

JAKARTA, October 9 (Dow Jones)--China will lift the current 15.0%
import tariff on Indonesian cocoa, the Jakarta Post reported Saturday.

The tariff cut was part of a memorandum of understanding signed Friday
by China's Minister of Trade Bo Xilai and Indonesia's Minister of
Trade Mari Elka Pangestu, the report said.

The report said that the two sides also established the
Indonesia-China Joint Investment Committee and agreed to set up a
special Web site on bilateral trade relations.

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The Jakarta Post
October 9, 2006
   
Mobitel to float 3.9 billion shares on JSX 

The Jakarta Post, Jakarta

PT Mobile-8 Telecom (Mobitel) will issue 3.9 billion shares on the Jakarta 
Stock Exchange later next month to raise fresh funds for financing the expansion 
of its Code Division Multiple Access (CDMA)-based wireless telecommunication 
networks throughout the country.

"Mobitel is committed to increasing its mobile telephone capacity to 6.9 
million in Java, Bali, Sumatra, Kalimantan, Sulawesi and Lombok," said Orias 
Petrus Moedak, a director of PT Danareksa Sekuritas, which will underwrite the 
initial public offering from Nov. 22 to 24. 

Investors will welcome the share issue because telecommunications is a 
growing industry and Indonesia still has a potential market of at least 100 million 
subscribers for CDMA-based cellular telephones, Moedak added. 

The International Telecommunication Union estimated in a recent study that 
with a cellular telephone penetration of a mere 21.1 percent (of 220 million 
people), the mobile telephone market in Indonesia is still very young, offering 
Mobitel big opportunities to expand its Fren mobile telephone. 

After the IPO, Mobitel, which has raised its paid up capital to more than Rp 
1 trillion (US$107.5 million), will be 19.91 percent owned by the investing 
public, 60.76 percent by Bimantara, 6.03 percent by Asia Link, 5.17 percent by 
Qualcomm with the remaining shares held by several other institutional 
investors. 

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Joyo Indonesia News Service
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